Probability and Finance: It’s Only a Game!
Provides a foundation for probability based on game theory rather than measure theory.ulliA strong philosophical approach with practical applications.liPresents in-depth coverage of classical probability theory as well as new theory./ulPreface.brbrProbability and Finance as a Game.brbrPROBABILITY WITHOUT MEASURE.brbrThe Historical Context.brbrThe Bounded Strong Law of Large Numbers.brbrKolmogorov’s Strong Law of Large Numbers.brbrThe Law of the Iterated Logarithm.brbrThe Weak Laws.brbrLindeberg’s Theorem.brbrThe Generality of Probability Games.brbrFINANCE WITHOUT PROBABILITY.brbrGame-Theoretic Probability in Finance.brbrGames for Pricing Options in Discrete Time.brbrGames for Pricing Options in Continuous Time.brbrThe Generality of Game-Theoretic Pricing.brbrGames for American Options.brbrGames for Diffusion Processes.brbrThe Game-Theoretic Efficient-Market Hypothesis.brbrReferences.brbrPhotograph Credits.brbrNotation.brbrIndex.Shafer…and Vovk…explain how probability can be based on game theory rather than measure theory, and how doing so allows it to be used in finance with out a lot of distracting an confusing assumptions about randomness. (iReference & Research Book News/i, November 2001)p….an interesting new mathematical and philosophical framework for probability… (iZentralblatt Math/i, Vol.985, No.10, 2002)p…a creative, entertaining and imaginative book… (iShort Book Reviews/i, August 2002)pThe first half of this truly original book introduces a novel approach to probability, founded on game theory rather than measure theory. In an admirably clear, scholarly and engaging manner, it traces its historical antecedents, expounds its advantages, develops its technicalities, and addresses its philosophical implications. The second half goes on to do the same for financial modelling. This is a book that should utterly change the way we @`à